Brand Management Final Flashcards
1
Q
Customer Relationship Management?
A
The overall process of building and maintaining
profitable customer relationships by delivering
superior customer value and satisfaction
2
Q
Three Parts of CRM?
A
Customer Acquisition –> Customer Retention –> Profits –> {Repeat}
3
Q
Why CRM?
A
- CRM can and does improve business performance
- Reduces the cost to serve and acquire customers
- Helps firms identify unprofitable customers
- Facilitates experimentation / learning
- Helps firms measure ROMI
- Allows the firm to focus marketing dollars
4
Q
What is the CRM Process?
A
- Form Database
- Select Customers
- Relationship Strategies
- Monitor Results
5
Q
Simplified Customer Life Value?
A
SCLV = (M − c)/(1− r + i) − AC
- Mt = the margin the customer generates in period t
- ct = the marketing costs of retaining the customer in period t
- i = the discount rate or firm’s capital cost
- r = the retention rate in period t (i.e., the probability keeping the customer)
- AC = the cost to acquire the new customer (at t = 0)
6
Q
4 C’s?
A
- Company
- Consumer
- Competitors
- Channel
7
Q
4 C’s Lead To?
A
- Segment
- Target
- Position (Differentiate)
8
Q
4 P’s?
A
- Product
- Place
- Promotion
- Price
9
Q
BCG Growth-Share Matrix?
A
Axis: Y = Market Growth Rate, X = Relative Market Share
- Star
- Question Mark
- Dog
- Cash Cow
10
Q
SWOT?
A
- Strengths (Leverage/Capitalize)
- Weaknesses (Reinforce)
- Opportunities (Invest)
- Threats (Identify)
11
Q
4 Common Sources of Blind Spots?
A
- Invalid Assumptions – Unchallenged assumptions & sacred cows
- Winner’s Curse – Overestimate value of a bid item. Pay too much.
- Escalating Commitment – Continued investment in bad ideas
- Overconfidence – Believing we’re smarter than we are.
12
Q
Competitive Myopia?
A
- Think Kodak & digital cameras
13
Q
POP’s & POD’s?
A
- Points of Parity = Things necessary to play in that space.
- Points of Difference - What makes you unique.
14
Q
3 Steps of Competitor Analysis?
A
- Identify the competitors
- Assess competitors’ objectives, strategies, strengths and weaknesses, and reaction patterns
- Select which competitors to attack or avoid
15
Q
What 3 Things Should You Understand About Your Competitors?
A
- Motives
- Tendencies
- Reactions
16
Q
Levels of Competition?
A
- Inner Circle: Form Competition
- Next Circle: Category Competition
- Next Circle: Generic Competition
- Outer Circle: Budget Competition
17
Q
Assessing Competitors?
A
- Center - Expected Future Strategies (Multi-step thinking)
- Upper Quartile: What are their objectives?
- Right Quartile: What is their current strategy? (Annual Plan + 4P’s)
- Bottom Quartile: What are their strengths & weaknesses? (SWOT)
- Left Quartile: How do you match up against them? (Compare Plan + 4P’s + SWOT)
18
Q
Competitive Sweet Spot?
A
Between Customer’s Needs and Company’s Capabilities, but outside Competitor’s Offerings
19
Q
4 Characteristics Affecting Consumer Behavior?
A
- Cultural
- Social
- Personal
- Psychological
20
Q
Hierarchy of Needs?
A
Bottom: Physiological Needs Second: Safety Needs Third: Social Needs Fourth: Esteem Needs Top: Self-Actualization Needs
21
Q
Questions to Ask About Consumer Behavior?
A
- Who is the decision maker? Infuencers?
- Why did they purchase?
- How easy was it to decide?
- Where did the consumer buy?
- How was the consumption experience?
- How is your relationship with the product or service?
- What role does the brand play in all this?
22
Q
Benefits of Using Intermediaries?
A
- Break Bulk
- Provide Assortment
- Hold Inventory
- Offer Services
- Mark Efficiency
23
Q
Key Channel Roles?
A
Retailer: - Category Manager - Department Manager - Buyer Brand - Category Captain (Dollar Share Leader) - Category Validator (#2 Share Leader)
24
Q
Manufacturer’s Goals?
A
- Volume
- Share
- Earnings
- Focus on: Brand
25
Channel Member's Goal?
- Volume
- Margin
- Costs
- Return on Resources
- Focus on: Category/Store, Volume vs. Competitors
26
GEMROI?
Gross Margin Return On Inventory:
| Total Gross Margin Dollars Generated/ Dollar Vale of Average Inventory (at cost)
27
P&L Buckets?
```
Gross Sales
- Trade
= Net Sales
- Product Costs
- Overhead
- Transportation
- Warehousing
= Gross Margin
- Ads & Promotions
- Market Research
= Contribution Margin
- G&A
= Operating Income
```
28
Gross Margin (GM)%?
Gross Margin/Net Sales
29
Product Contribution Margin (PCM)%?
Contribution Margin/Net Sales
30
Trade Strategies?
OI (Off Invoice) - Buys down everyday and promotion
- BB (Bill Back) - Used after performance is proved
- EMF (Event Marketing Funds) - Fixed Funds
- SCAN - Pay for performance
31
Secondary Research?
- Internal
| - External
32
Primary Research?
- Observation
- Surveys
- Panels
- Experiments
- Simulations
33
TPR?
Temporary Price Reductions
34
Display Promotions?
- Temporary Secondary Location
- Special Effor by Retailer to Attract Attention
- Contain Merchandise Accessible to Shopper
35
Feature Promotion?
Print Ads by retailer used to promote a specific product
36
Drivers of a Forecast
- Trends
- Base Distribution
- Promotions
- Innovation
- Don't forget Pipeline
37
Planning Process?
Situation Assessment:
- Internal/External Analysis: 4C's
- SWOT
- Strategic Competitive Advantage: What is our sustainable "Super Strength"
- Key Issues/Implication: Top 4-6 findings and what to do about them
Strategic Growth Plan
- Objectives: The overarching statement of purpose and focus
- Goals: Desired outcomes
- Strategies & Measures: How to reach goals
- Initiatives: Specific projects and actions for implementing strategies
38
Ways to Segment
Sorted from Most Used to Most Useful:
- Geographic
- Demographic
- Psychographic (Lifestyle, Personality, Values)
- Behavioral
39
Position
How the product is viewed by consumers on important attributes relative to competing products.
40
What is Brand?
- Your brand is not your brand symbols.
- Your brand is a perception that exists in the minds of your constituents about your relevance and promise of value.
- Your brand is the total of the impressions formed through exposure to your touchpoints.
41
Brand Pyramid
```
Bottom: Attributes
Second: Functional Benefits
Third: Emotional Benefits
Fourth: Values of User
Top: Personality
```
42
3 Parts of Brand Identity
1. Visual Elements (Picturing, Symbols, Animation)
2. Verbal Elements (Naming, Wording, Describing)
3. Visceral Elements (Sound, Texture, Scent)
43
Types of Brand Architecture?
1. House of Brands - Proctor & Gamble
2. Endorsed Brands - Cortyard by Marriott
3. Subbrands - Walkman
4. Branded House - Virgin
44
Key Characteristics of Place
- Employee type and density
- Merchandise type and density
- Fixture type and density
- Sound
- Odor
- Visual Factors
45
GM?
Price - VC
46
GM%?
GM/Price
47
Mark-Up
GM/VC
48
What price provides x% margin?
P = VC/(1-%Margin)
49
What price provides a x% mark-up?
P = VC * (1+%Mark-up)
50
Elasticity?
E = ((Q2 - Q1)/Q1)/((P2 - P1)/P1)
51
What 4 Things Make Great Advertising
1. Builds your business
2. Consumer insight based
3. Delivers ownable "competitive" brand positioning
4. Campaignable
52
What are the 5 parts to a marketing campaign?
- Advertising
- Personal Selling
- Direct Marketing
- Public Relations
- Promotion
53
5 Copy Brief Essentials
- Marketing Objective
- Assignment (Types of advertising, i.e. TV)
- Customer Insight
Advertising Strategy Statement
Brand Personality/Essence
54
Push vs. Pull Marketing
Push - Sales person suggesting the product (i.e. a doctor giving out a perscription)
Pull - Ads targeted to customers to purchase (i.e. drug commercials)
55
AIDA Model + 2 Other Ad Measurments
- Attention
- Interest
- Desire
- Action
- Fit (Personality)
- Substitutability
